Canada braces for a U.S. showdown.

The powerful U.S. Teamsters Union is attempting to take over representation of 500 transportation workers on film and TV sets in Toronto, sparking industry fear of labor unrest in the city's $1 billion a year, U.S.-dominated movie-TV industry. Toronto now ranks third in film and television production in North America. Shooting in Canada by foreign companies reached $1.8 billion in 2001, a l7percent increase from the previous year.

Also, the Los Angeles-based Film and Television Action Committee, representing 200,000 carpenters, background performers and other rank-and-file workers, is drafting a petition to the U.S. Commerce Department seeking a countervailing duty on movies produced in Canada.

This is in addition to the new directives, mostly regarding U.S. productions shot in Canada, set up by the U.S. Screen Actor's Guild (see separate story). ACTRA, the union representing Canadian performers, however, appears to be backing SAG's new directives.

In question is the very successful media incentive programs that Canada was able to create at the local, provincial and federal levels. Canadian officials defend these incentives, saying there's enough work to go around. "The numbers show that one of the fastest-growing industries in America, in fact the world, is the entertainment business," said Canadian Consul General in the U.S., Colin Robertson, in Los Angeles. "There is more employment than there ever has been; not only in Canada, but here in Los Angeles." Kathy Garmezy, director of government affairs for the U.S. Directors Guild of America acknowledged that "the pie is getting bigger, but Canada's piece is getting bigger disproportionally."

On the other hand, Canada is becoming very protective of its television broadcast borders. Recently, Canada's highest court stated that satellite reception from channels not authorized under Canadian laws is illegal. Said Justice Frank Iacobucci, "It would make no sense for Parliament to provide for Canadian ownership, production and content in the national broadcasting system, then leave the door open for unregulated, foreign broadcasting to come in and sweep all that aside."